United States

Holiday Spending in Bay Area Is 20 Percent More Than National Average: Report

The holidays are here and for the Bay Area that means shelling out more money than elsewhere in the United States. 

According to a Deloitte annual retail report, people who live in this economically thriving part of Northern California are expected to spend 20 percent above the national average.

In 2017, holiday spending in the Bay Area amounts to $1,478, which is higher than $1,330 in 2016. By contrast, this year's national average is $1,226 and last year's was $998, the report found. 

Contributing factors include a larger number of people who have higher education — 72 percent in the Bay Area as compared to 58 percent nationally — as well as a higher average income — $89,000 versus $76,000. 

Deloitte found that 45 percent of people are likely to buy clothes, while 41 percent will purchase electronics and 37 percent will go for gift cards.

People receiving gifts, however, have different preferences. Forty-two percent want electronics, 35 percent want gift cards and 34 percent want clothing, the report showed.

An affinity for online shopping is a trend that has carried over from last year, according to Deloitte. People spend roughly 58 percent of their budgets online and about 39 percent in brick-and-mortar stores. 

At 60 percent, those who will make purchases on their phones are up 25 percent from last year's 35 percent, the report found.

With online purchases comes the need for shipping, and Deloitte says nearly 85 percent of consumers prioritize free shopping over fast deliveries.

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